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Quantchabot has detected a promising Bull Call Spread trade opportunity for VISTRA CORP (VST) for the 15-Oct-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
VST was recently trading at $19.57 and has an implied volatility of 48.08% for this period. Based on an analysis of the options available for VST expiring on 15-Oct-2021, there is a 34.15% likelihood that the underlying will close within the analyzed range of $19.58-$20.35 at expiration. In this scenario, the average linear return for the trade would be 20.22%.
Big 9.73% Change: After closing the last trading session at $17.84, VISTRA CORP opened today at $19.50 and has reached a high of $19.75.
Trade approach: A movement as big as 9.73% is a significantly bullish indicator, so this trade is designed to be profitable if VST maintains its current direction and does not revert back to pricing on the bearish side of $19.57 on 15-Oct-2021. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bullish strategy, the trade would be profitable if VISTRA CORP closes at or above $19.55 on 15-Oct-2021. Based on our risk-neutral analysis, there is a 51.32% likelihood of this return.
Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.
To analyze this trade in depth, please visit the Quantcha Options Search Engine.